Alcatel-Lucent and HP’s coming together to jointly offer ICT solutions to the industry is being perceived as anything but the reason cited by the two organization i.e. to generate new avenue for revenue growth.

There are two main theories which analysts believe have brought together the two firms.

The first is revolving around the cost saving measures where the synergies of the two organisations can be worked to bring about  savings. For instance post tie-up 1000 employees of Alcatel-Lucent will be shifted on HP payrolls.

Alcatel-Lucent has on record said that the move is in lines with its targeted $ 750 million cost saving measure. Though it is added cost for HP, the incentive for the move has been provided by the managed services contract granted to it by Alcatel-Lucent.

The other theory being believed is that HP is gearing up to take on Cisco which has recently decided to foray into server business vertical. Analysts believe the tie-up with Alcatel-Lucent will help HP is aggressively positioning its unified communications bouquet which till now was tilted in favour of Cisco.

Even in case of cloud computing environment, the tie-up works well for both the companies.

Even though the tie-up may actually lead in new revenue generation for both the firms, presently the development will help company in addressing the two aspects as discussed i.e. cost savings as well as gearing up for the Cisco challenge.